IRS has tips for those yet to file

By Michelle Singletary

The time is coming faster than you think. Yes, it's crunch tax time.

I know I'm breathing a little better. For the first time in years, my husband and I aren't going to be up all night April 14 trying to gather our tax records. But if you're not there yet, here are some last-minute tips and mistakes to avoid courtesy of the Internal Revenue Service:

• Choose the right filing status. Many people who are single, recently separated or divorced often make a mistake by either not claiming "head of household" when they can or claim it when they don't qualify for that status. For example, one of the requirements is that during the tax year you paid more than 50 percent of the costs of keeping up a home for yourself and qualified dependent(s).

For more information, check out IRS Tax Topic 353 at www.irs.gov. Also don't assume if you're married that's it's financially better to choose "married filing separately." Doing so could make you ineligible for some tax breaks. If you're married and you're not sure which filing status to use, compute your taxes separately and jointly and see which method results in a smaller tax liability.

• If you know you can't file in time, request an extension. You can get an extension to file by Aug. 15 by filling out IRS Form 4868 "Application for Automatic Extension of Time to File." Just keep in mind that regardless of whether you file for an extension, you still have to pay any taxes you owe by April 15. I know that last piece of advice sounds nonsensical. If you have to pay your taxes, doesn't that mean you have to do some work to figure out how much you owe? Yup. But nonetheless pay up or risk a penalty.

• If you realize you have a huge tax bill this year, don't panic. You can apply for an IRS installment agreement. To request an installment agreement, submit Form 9465 "Installment Agreement Request" and send it with your return. You can also send a written request, attached to the front of your return. You'll need to specify the amount you can pay and the day you wish to make your payment each month. The IRS says it usually responds to such requests within 30 days.

If you can't pay, contact the IRS at (800) 829-1040. There are other options. Whatever your situation, it is better to initiate the call than to have the IRS chase you down.

• Did you write off all the points paid as a result of a refinance last year? If you did, you may have made a common tax mistake. Generally, points paid for an original home mortgage can be fully deducted in the year the points were paid. Yet points paid to refinance a home mortgage usually must be deducted over the life of the loan.

However, if you used money from your refinancing to make home improvements (and if you meet certain other requirements), you may be able to deduct more points.

For more information, see IRS Tax Topic 504 or Publication 936 "Home Mortgage Interest Deduction."

Finally, when you do file your return, there are several ways to check on its status.

You can go to www.irs.gov and click on the link for "Where's My Refund?"

Don't have a computer? No problem. If it has been at least four weeks since you filed your return, you can call the IRS at (800) 829-4477 to check on your refund.

Now go do your taxes.